2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main...

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2013 Trends in Recognition Utilizing Recognition to Drive Employee Engagement

Transcript of 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main...

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2013 Trends in RecognitionUtilizing Recognition to Drive Employee Engagement

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2PAGE SECTION 2CONTENTS

Contents

Introduction: Why Recognize?Page 0301

02

03

04

05

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In the past few years, as companies have grown wise to the needs of a changing workforce, recognition has become a buzzword for HR professionals in-the-know. However, recognition is often discussed in a vacuum, with little thought to greater business impact. Unfortunately, recognition for recognition’s sake isn’t the kind of the thing that will drive performance at your organization. Recognition strategy has to be done right in order to drive overall Employee Success, which is the force behind any high-performing organization. If you’re going to recognize, you have to do it right.

So what kind of recognition is successful? The kind of recognition that reinforces desired behaviors in a way that is meaningful and timely, because, quite simply: behaviors that are recognized get repeated. /�>̽Ã�Ü�Þ����Ì�i��>ÃÌ�wÛi�Þi>ÀÃ�Üi½Ûi�Ãii��L�Ì��>��i�iÀ}i�Vi��v�employee recognition technology and many companies investing in it. The companies making the leap are the smart, forward-thinking organizations that are thinking ahead of the curve literally and w}ÕÀ>Ì�Ûi�ÞÆ�Ì�i���ÃÌ�ÀiVi�Ì��>ÀÌ�iÀ��Þ«i�ÞV�i�«À��Ìi`����Óä£Ó�shows that Social Employee Recognition is on the verge of main-stream adoption. The companies jumping on the trend early are the ones that will win the war to acquire and retain great talent.

PART 01 | INTRODUCTION: WHY RECOGNIZE?

3$57���

Introduction: Why Recognize?

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4PART 01 | INTRODUCTION: WHY RECOGNIZE?1. See Lockwood 2. See Gallup

Why It Works

So why does this all matter? What’s the reason that recognition has become such a powerful force in the workplace? The biggest reason is that recognition enables organizations to reinforce behaviors that are key to the success of the business at the same time as it keeps employees engaged. In fact, it’s been proven time and time again that recognition drives engagement and engagement directly leads to above-par results. A recent study by HR Magazine found that º �}>}i`�i�«��ÞiiÃ�«iÀv�À��Óä¯�LiÌÌiÀ�>�`�>Ài�nǯ��iÃÃ����i�Þ�Ì��leave their organization.”£

Not only does an engaged workforce mean better performance, it >�Ã���i>�Ã�`À>�>Ì�V>��Þ�Ài`ÕVi`�ÌÕÀ��ÛiÀ]�Ü��V���>Ã�>�Ã�}��wV>�Ì� impact on a business’ success. We all know how much time and money it costs to re-recruit, re-train and regain momentum lost through turnover.

Of course while an engaged workforce will get you ahead, the converse is also true: a disengaged workforce will put you far behind. Disengaged employees don’t just hurt the organization Ü�Ì��Ì�i�À��Ü��«��À�«iÀv�À�>�ViÆ�Ì�iÞ�>�Ã����«>VÌ�Ì�i���}�� «iÀv�À���}�V���i>}ÕiÃ�>À�Õ�`�Ì�i�°��>��Õ«�ÃÌ>Ìi`����Óä£Ó�Ì�>Ì�“actively disengaged employees erode an organization’s bottom line while breaking the spirits of colleagues in the process.” Within the 1°-°�Ü�À�v�ÀVi]��>��Õ«�iÃÌ��>ÌiÃ�Ì�i�V�ÃÌ��v�>�`�Ãi�}>}i`�Ü�À�v�ÀVi�Ì��Li���Ài�Ì�>��fÎää�L������������ÃÌ�«À�`ÕVÌ�Û�ÌÞ�>���i°Ó

-����Ü�`�iÃ�Ì��Ã�Ài�>Ìi�Ì��ÀiV�}��Ì���¶��>��Õ«��`i�Ì�wiÃ�Ì�>Ì� V��«>��iÃ�Ü���ÀiV�}��âi�Ì�i�À�i�«��ÞiiÃ�}i�iÀ>Ìi�ÓÇ�«iÀVi�Ì� ��}�iÀ�«À�wÌÃ]�xä�«iÀVi�Ì���}�iÀ�Ã>�iÃ�>�`�xä�«iÀVi�Ì���}�iÀ� customer loyalty. It’s clear that recognition leads to engagement and reinforces the key behaviors that drive company success. Sounds simple, right?

Not exactly. As we stated above, there’s actually a right and a wrong way to recognize. Recognition done incorrectly is a substantial expense that won’t help you meet business goals and may even hurt your organization in the long run. In order to maximize the power of recognition at your company and drive Employee Success, you’ll need to understand (and implement!) the key trends moving ��Ì��Óä£Î°��i̽Ã�}iÌ�ÃÌ>ÀÌi`t

“The companies jumping on the trend early are the ones that will win the war to acquire and retain great talent.”

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01 The workforce is more global, mobile and social than ever

5PART 02 | HOW DID WE GET HERE? THE BIG INFLUENCES DRIVING THE 2013 RECOGNITION TRENDS

When it comes to developing a recognition strategy, there are four main changes to our workforce today that HR and businesses need to be aware of and react to in our approach to recognition. They are:

1. The workforce is more global, mobile and social than ever2. SaaS is becoming the default application for HR Technology3. �>�}iÃ����Ì�i�iV����Þ��i>��«À�}À>�Ã�>Ài�ÃVÀÕÌ���âi`�v�À�,"�4. x£�«iÀVi�Ì��v�Ì�i�Ü�À�v�ÀVi��Ã���Ü��i��8]��i��9]�>�`�Ì�i�����i���>�Ã3

PART 02

How Did We Get Here? The Big In!uences Driving the 2013 Recognition Trends

4 Changes to the Workforce Today

The workforce is more global, mobile and social than ever

SaaS is becoming the default application for HR Technology

�>�}iÃ����Ì�i�iV����Þ��i>��«À�}À>�Ã�>Ài�ÃVÀÕÌ���âi`�v�À�,"�

x£�«iÀVi�Ì��v�Ì�i�Ü�À�v�ÀVi��Ã���Ü��i��8]��i��9]�>�`� the Millennials3

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If you were to ask a random group of employees in a company if they interact on a daily basis with a peer that isn’t in the same physical location, you would get a majority of hands in the air. Not only that, but the contingent workforce is also growing.3 This means your i�«��ÞiiÃ�>Ài�Ü�À���}����`�vviÀi�Ì��vwViÃ]�>�`�«�ÃÃ�L�Þ�iÛi�� different time zones.

Everyone needs to be “on” at all times, and that means more mobile `iÛ�Við����v>VÌ]�>VV�À`��}�Ì���>ÀÌ�iÀ]����Ì�i�Þi>À�Óä£Î��Ì��Ã�«Ài`�VÌi`�that mobile devices will outweigh computer usage as the most common Web access device worldwide.4 Employees are constantly checking work emails, and engaged with their mobile devices and they expect the same capabilities on those devices as they have on their computers.

3. See U.S. Department of Labor Bureau of Labor Statistics 4. See Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond

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6PART 03 | HOW DO I SELL IT TO SENIOR MANAGEMENT? 6PART 02 | HOW DID WE GET HERE? THE BIG INFLUENCES DRIVING THE 2013 RECOGNITION TRENDS

Of course, some of those capabilities include social. And when you shift to social, with social enterprise software (for example, Jive or 9>��iÀ®�>�`�V���Õ��V>Ì����Ì���Ã�Li��}�À���i`��ÕÌ�Ãii���}�Þ�i>V��month, the workforce now communicates and has access to more information than ever. More importantly, they’re accustomed to getting that information via social platforms, which have become a hub for conversation and professional interactions.

So what does all that mean for recognition? To begin, it’s harder to recognize employees and teams face-to-face, not to mention track those interactions across organizations. Employees are often more accustomed to communicating with devices and across social networks than they are with an in-person team or manager. That means we lose control over the recognition process and it becomes `�vwVÕ�Ì�Ì��«À�Û�`i�>�V��Ã�ÃÌi�Ì�i�«��Þii�iÝ«iÀ�i�Vi°�

/�i�`iw��Ì�����v�->>-��Ã�º-�vÌÜ>Ài�>Ã�>�-iÀÛ�Vi°»��̽Ã�Ì�i��`i>�Ì�>Ì�Ã�vÌÜ>Ài��Ã�>Û>��>L�i�>�`�>VViÃÃ�L�i�Ó{ÉÇ������i]��À�º���Ì�i�V��Õ`]»�without on-premise installation requirements. Basically, it’s not like the old days where companies like Oracle and SAP would come into an organization and begin installing physical software onto your company’s computers. There is no installation required. It’s online, integrates with your business, is super secure and enables simple upgrades of newer technologies.

Whether ‘SaaS’ is a new or old concept to you, it has become the default service model for HR technology. Remember when you used to do applicant tracking in Excel spreadsheets? Taleo (acquired LÞ�"À>V�i����Óä£Ó®���Ü�`�iÃ�Ì�>Ì�>�`�Ü���i���Ì���Ài�Ü�Ì���ÌÃ�->>-�ÌiV�����}Þ°�-ÕVViÃÃ�>VÌ�ÀÃ�­>VµÕ�Ài`�LÞ�-Ƃ*����Óä£Ó®�Ã����>À�Þ�«ÕÌ�performance management in the cloud. Many HR functions are now being supplemented with SaaS that’s easy to access and share, plus provides reporting and insight. Recognition is no exception. Now, robust employee recognition SaaS platforms are the norm.

02 “SaaS” is becoming the default application for HR Technology

“Software-as-a-Service” is available 24/7 “in the cloud,” with no installation required.

It’s online, integrates with your business, is super secure and enables simple upgrades

of newer technologies.

SaaS

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7PART 02 | HOW DID WE GET HERE? THE BIG INFLUENCES DRIVING THE 2013 RECOGNITION TRENDS

�,�*À�viÃÃ���>��­wÛi�Þi>ÀÃ�>}�®\� Hey, did you know these new generations are coming to the workplace? What are we going to do? �,�*À�viÃÃ���>��­Ì�`>Þ®\� Hey, did you know these new generations are coming to the workplace? What are we going to do?

They’re not coming. They’re here! As much as the older generations may not want to admit it, the new generations have taken over the majority of the workforce. Why does this matter? They had a different upbringing, different motivation, see work and their job in a different light and need to be managed differently. It particular, they need to be managed differently when it comes to recognition. Many of them grew up as the “trophy generation” – meaning every-body got a trophy just for participating, whether or not they won. As a result, they require consistent recognition and feedback that most organizations aren’t equipped to give.

In a recent AV��iÛiÀÃ��>ÃÃ��v�Óä£Ó�ÃÕÀÛiÞ]�Ì��Ã��iÜ�}i�iÀ>Ì����V��Ãi�Ã>�>ÀÞ�>Ã�Ì�i�À�v�ÕÀÌ��À>��i`���Ì�Û>Ì�����v�w�`��}�>��iÜ���L°x They want to make an impact, grow in the company (quickly) and by nature, they need an environment where they are being recognized often. This new generation requires companies to think of a new strategy for recognizing employees.

There’s no doubt that life through the HR lens has changed dramatically in very recent times. This combination of a new workplace, new technologies, and new external environments has transformed the way we need to look at recognition in the workplace.

04 51 percent of the workforce is now Gen X, Gen Y, and the Millennials03 Changes in the economy mean budgets

are scrutinized for ROI

,>�Ãi�Þ�ÕÀ��>�`��v�Þ�Õ½Ûi�Lii��>Ã�i`�Ì��Ã�>Ã��LÕ`}iÌ����Ì�i��>ÃÌ�wÛi�years. Are you getting some funny looks from the people sitting near Þ�Õ����Ì�i��vwVi��À����Ì�i�LÕö���̽Ã���]�Þ�Õ�V>��«ÕÌ�Þ�ÕÀ��>�`�`�Ü�°�����>������i�����`]�Ì�iÞ½Ûi��>`�Ì��Ã�>Ã��LÕ`}iÌÃ�Ì��°����i�Þ�Õ]�>�`�everyone else around the country, they’re under constant pressure to `iw�i�,"��v�À�>������Ì�>Ì�Ûið�/���}Ã�Ì�>Ì�>Ài��>À`�Ì���i>ÃÕÀi�>Ài�}iÌÌ��}�Ã�>Ã�i`�vÀ���Ì�i�LÕ`}iÌ°�9�Õ��ÕÃÌ�«À�Ûi�Û>�Õi�Ü�i���Ì�V��iÃ�Ì��bottom-line success.

��Ûi��Ì�i�ÀiVi�Ì�iV�����V�VÀ�Ã�Ã]�V��«>��iÃ�>Ài�V>ÀivÕ��Þ�ÃVÀÕÌ���â��}�all spends – and eliminating all those that don’t provide clear, measurable value. When it comes to recognition programs, they’re asking: Is what we’re spending budget on improving performance and having a proven positive impact? Or is it just there, and we’re spending it because we’ve always spent it? The latter simply isn’t going to cut it anymore.

Fortunately, those SaaS technologies we talked about in the last section give us great insight into metrics that clearly determine the value of each element of our HR budgets – especially recognition programs. We’re able to clearly track and measure results and tie Ì�i��Ì��«iÀv�À�>�Vi°��Ì��>�iÃ��Ì�i>ÃÞ�Ì��`iw�i�,"��>�`�Ì�i�«À�}À>��success to employee success to overall business success.

5. See Class of 2012: Understanding the Needs of your Future Workforce

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8PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

PART 03

2013 Trends in Recognition: Four Best Practices to Positively Impact Employee Success��À�>��âi`�ÀiV�}��Ì�����>Ã�Lii��>À�Õ�`�v�ÀiÛiÀ����Ì�i�Ü�À�«�>Vi°�����v>VÌ]����}�ÌiÀ��ÃiÀÛ�Vi�>Ü>À`Ã�ÃÌ>ÀÌi`����Ì�i�£�ää½Ã�>Ì���À`]�Ü�iÀi��i�ÀÞ�Ford encouraged employees to stick around for years on the vehicle assembly line by rewarding them with high-end gifts such as watches. Some would say not much has changed since then, but the reality is we’ve seen a dramatic shift in the way companies are recognizing and rewarding their workforces.

7i��ÕÃÌ��`i�Ì�wi`�Ã��i��v�Ì�i�v>VÌ�ÀÃ�Ì�>Ì�>Ài���«>VÌ��}�Ì��Ã�Ã��vÌ°�ƂÃ�Üi���Ûi���Ì��Óä£Î�q�>�Ì��i�Ü�i���,�ÌiV�����}Þ�>�`��««�ÀÌÕ��ÌÞ��Ã�>Ì��ÌÃ�peak - there are four trends in recognition emerging that make it more possible than ever to drive Employee Success and therefore deliver measurable business results.

Before we go through these trends, let’s consider what companies are going after with a formalized recognition strategy, as well as where they need to start.

/�i�w}ÕÀi�Ì��Ì�i�À�}�Ì�Ã��ÜÃ�that the end game is employee engagement. But in order to get there using recognition, there are the four trends listed there that we will explore.

EMPLOYEE ENGAGEMENT

PEERRECOGNITION

RECOGNITIONTRENDS

FOUNDATION

ENDRESULTS ENABLERS

TECHNOLOGY

RHYTHM

SOCIALRECOGNITION

CULTURE& DNA

RESULTSBASED

EMPLOYEEANALYTICS

COREVALUES

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9PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

What you’ll quickly notice is that these best practices require technology in most cases to be successful. It’s the evolution of recognition, just as it was with applicant tracking, performance management, internal communication, and so on. Recognition is no different and now technology has now become an enabler of key recognition strategies that we could never entertain before.

/�i���ÃÌ���«�ÀÌ>�Ì�«>ÀÌ��v�Ì�i���`i���Ã�Ì�i�v�Õ�`>Ì���°��9�ÕÀ�V��«>�Þ� can have all the technology in the world. It can have unlimited resources. �Ì�V>���>Ûi�>VViÃÃ�Ì��Õ�����Ìi`�vÕ�`ð�����i��>�iÃ���`]�Þ�Õ�V>��have the sexiest and most effective tools on the planet – but if your company doesn’t know WHAT people should be recognizing each other for, then it’s a useless exercise.

9�Õ�V��«>�Þ�v�Õ�`>Ì���]�VÕ�ÌÕÀi]�� Ƃ]�����o�V>����Ì�Ü�>Ì�Þ�Õ� want, but the standard behaviors and values that your company lives and makes decision by needs to be ingrained in the reasons why employees will recognize. Once you’ve established your company core values and behaviors (and no, not established by a page on your website – more like a concentrated effort to make everyone in the V��«>�Þ�>VV�Õ�Ì>L�i�v�À�Ì��Ãi�Û>�Õiî�Ì�i��Þ�Õ��>Ûi�LÕ��Ì�Ì�i�wÀÃÌ�step towards shifting to a culture of recognition.

9�Õ��>Þ�>�Ã��Li�Ü��`iÀ��}�Ü�Þ�À�ÞÌ����Ã���«�ÀÌ>�Ì°�����À`iÀ�Ì��make this work it has to be a constant activity. Recognition can’t wait until the annual town-hall to recognize employees for positive behaviors. It needs to be a daily activity that doesn’t just live through technology, but through the social and communication rhythm of your company. Find the vehicles you have now to communicate, and leverage them.

Now onto the fun stuff. What are the new recognition trends and best-practices? What’s got the HR world all buzzing? What are successful companies doing today that will become mainstream that Þ�Õ�V>��}iÌ�>�i>`��v�Ì�i�VÕÀÛi����>Ã�Üi��¶��9�Õ½Ûi�V��i�Ì��Ì�i�À�}�Ì�place, so read on!

Want to create a culture of recognition? Ask these questions at your next leadership meeting

What’s our current culture? Every company has one.

What do we want our culture to be? Establish some core values.

What do we value? Are we recognizing staff for living our values or company objectives?

Do our systems and processes help or hinder? Bolt culture into the way you measure and maintain the business.

What are our leaders like as role models? 9�ÕÀ�VÕ�ÌÕÀi�V>���Ì�Ì�À�Ûi�Õ��iÃÃ��i>`iÀÃ�ÃiÌ�>��iÝ>�«�i�Ì��inspire employees.

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Want a simple way to build recognition into your company rhythm? Add a recognition moment open to the group at the end of each team meeting!

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10PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

Trend 1: Embrace Peer-to-Peer Recognition in Every Direction.

The reality is many companies are doing this today. They’re not just allowing peer-to-peer recognition and opening it up to every employee, they’re actually allocating budgets to allow any employee to recognize and reward any other employee on a weekly basis, or >Ì�Ì�i�À�`�ÃVÀiÌ���°�À>âÞ¶� �Ì�>Ì�>��°

The fact is, once you identify the key behaviors that promote your company values and drive Employee Success, the act of peer-to-peer ÀiV�}��Ì�����>Ã��>�Þ�Û>�Õ>L�i�Li�iwÌð�/�iÃi���V�Õ`i\

U� Amplify the daily reinforcement of behaviors your company believes in

U� What gets recognized, gets repeated, so you’ll see more of those behaviors

U� Recognition drives employee’s intrinsic motivation, increasing their engagement

U� Quickly identify key performers – and high potentials

U� Weed out non-performing employees

U� Begin to identify potential leaders who embrace recognition and do it naturally

Think of how powerful this is. Assuming you can trust the employees you’ve hired (and if not, why did you hire them?) you have leveraged the whole organization to promote desired behaviors on an ongoing basis.

And if you don’t think people will participate, think again. There are hundreds of successful companies we’ve worked with that have implemented a program and have seen tremendous usage and measurable success beyond their wildest imagination.

Remember Etch-a-Sketch? Of course you do! The beauty of Etch-a-Sketch was that with one swoop, everything was erased. Now think of your of current recognition program. Erase the recognition practices (or lack thereof) that you have today. And picture every single employee having the ability to formally and publically recognize anyone else in the company – top-down, bottom-up, side-to-side – for >�Þ��v�Ì�i�Li�>Û��ÀÃ��À�Û>�ÕiÃ�Þ�Õ½Ûi��`i�Ì�wi`�>Ã�>�v�Õ�`>Ì�����v���Ü�your company should operate. Picture it: the new junior recruit ÀiV�}��â��}�Ì�i� "°��

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11PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

Three Tales of Employee Success: Proof Employee Recognition Works

�i���ÌÌi]���i��v�Ì�i�Ü�À�`½Ã��>À}iÃÌ�«À�viÃÃ���>��ÃiÀÛ�ViÃ�wÀ�Ã]�Ü>Ã�������}�Ì��VÀi>Ìi�>�«À�}À>��Ì�>Ì� could provide a consistent recognition experience across the organization. Deloitte employees were feeling under-recognized, and with the current economy, Deloitte needed to ensure its employees V��Ì��Õi`�Ì��Li�i�}>}i`�Ã��Ì�iÞ�V�Õ�`�`À�Ûi�LÕÃ��iÃÃ�ÀiÃÕ�Ìð�7�Ì����Ì�i�wÀÃÌ����Ì�]��Ç�«iÀVi�Ì��v� Deloitte’s employees activated their account. Today, the program averages one recognition every 44 seconds and Deloitte’s employee engagement team credits the program for creating a culture of ÀiV�}��Ì����>Ì�Ì�i�wÀ��>�`�`À�Û��}� �«��Þii�-ÕVViÃð6

�iÀ�`�>��Ài`�Ì�1����]�Ü�ÀÌ��fn�L����������>ÃÃiÌÃ]�Ã>Ü�Ã����>À�ÕÃiÀ�>`�«Ì����Ü�i��Ì�iÞ���«�i�i�Ìi`�>� ÀiV�}��Ì����ÃÌÀ>Ìi}Þ°�/�i�V��«>�Þ�ÃiÀÛiÃ��ÛiÀ�ÓÈä]äää�VÕÃÌ��iÀÃ�>�`�wÀ��Þ�Li��iÛiÃ�Ì�i�À�}Ài>ÌiÃÌ�>ÃÃiÌ�is their highly engaged employees. The program quickly reached the results Meridian sought to achieve, ��V�Õ`��}���}���iÛi���v�«>ÀÌ�V�«>Ì����Ü�Ì���n�«iÀVi�Ì��v�i�«��ÞiiÃ�>VÌ�Û>Ì��}�Ì�i�À�>VV�Õ�ÌÃ]�>�`�Ã>Ü��È� percent of recognitions tied to an achievement of sales results.Ç

�������Þ]�Ì�i�£äÌ���>À}iÃÌ�«�>À�>ViÕÌ�V>��V��«>�Þ����Ì�i�Ü�À�`]��>`�i�}>}i�i�Ì�ÃÕÀÛiÞÃ�Ì�>Ì�Ã��Üi`� À����v�À���«À�Ûi�i�Ì����Ì�i�>Ài>��v�ÀiÜ>À`Ã�>�`�ÀiV�}��Ì���°�����Þ�Ü>�Ìi`�Ì����Ûi�Ì��>�Ã��ÕÌ����Ì�>Ì�Ü�Õ�`� recognize and reward employees sideways, up and down – as well as peer to peer. The business impact �v�����Þ½Ã��iÜ�ÀiV�}��Ì����«À�}À>��`À>�>Ì�V>��Þ�Ài`ÕVi`�>`����ÃÌÀ>Ì����>�`��>�>}i�i�Ì�V�ÃÌÃ��v�Ì�i� recognition program resulting in a decreased budget. Most importantly, employee engagement scores ��Ûi`�vÀ���ΰ�È�Ì��{°£Î����>�wÛi�«���Ì�ÃV>�i�­Ü�Ì��wÛi�Li��}�Ì�i���}�iÃÌ®°�Ƃ``�Ì���>��Þ]�`�ÀiVÌ�w�>�V�>�� ÀiÃÕ�ÌÃ�Ã��Üi`�Ì�>Ì�Ì�i���ÃÌ�i�}>}i`�i�«��ÞiiÃ�V��ÌÀ�LÕÌi`�Ì��>�È°x�«iÀVi�Ì���VÀi>Ãi����ÀiÛi�Õi� }À�ÜÌ��ÛiÀÃÕÃ�Ì�i��i>ÃÌ�i�}>}i`�i�«��ÞiiÃ��v�Ó°Î�«iÀVi�Ì°n

6. See Jones7. See Garr8. See Jones

Page 12: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

12PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

Trend 2: Recognize Performance, Not Presence

��«>��iÃ�>Ài��>���}�>�Ã��vÌ°�� Ûi����Ài]���Ü����Ì�i��ii�Ã��v�Ì�i�w�>�V�>��VÀ�Ã�Ã]��À}>��â>Ì���Ã�>Ài�ÃVÀÕÌ���â��}�LÕ`}iÌÃ�>�`�i�ÃÕÀ��}�there is a return on investment on all costs. One of the costs under scrutiny is annual years of service programs. It’s a $46 billion� market in North America that arguably isn’t providing any value to organizations. If you think that’s a harsh statement, ask yourself if you’ve ever worked any harder, or stayed with a job an extra day to receive a long service award. It’s also doubtful that service awards will be a draw for candidates in the recruiting process.

So what’s the problem with years of service programs? All they do is reward people for sitting in their seat and breathing. In fact, every employee, whether they’re a top performer, high potential, average or non-productive employee, gets recognized and rewarded equally.

Back on Henry Ford’s assembly line, this wasn’t such a bad idea. But over the years, it’s become a standard HR practice – possibly to our detriment. Only recently, companies have started to realize that they can make better use of that budget with meaningful recognition «À�}À>�Ã�Ì�>Ì���«>VÌ�>�`�`À�Ûi�`>Þ�Ì��`>Þ�Li�>Û��ÀÃ�v�À�Ì�i�Li�iwÌ�of the business.

This doesn’t mean you should ignore levels of service, but it can be done with very little budget or none at all. The trend is that companies are focusing on making an impact on recognition daily as opposed Ì��>��Õ>��Þ°�Ƃ��Ì�iÀ�}��`�Ài>Ã���v�À�Ì��ö�/�i�Óää��1-��i«>ÀÌ�i�Ì��v��>L�À�ÃÌÕ`Þ�Ã��ÜÃ�Ì�>Ì�Ì�i�>ÛiÀ>}i�i�«��Þii�Ìi�ÕÀi��Ã�£°n�Þi>Àð����ÃÌ�i�«��ÞiiÃ��iÛiÀ�Ãii�Ì�i�À�wÛi�Þi>À�ÃiÀÛ�Vi�>Ü>À`°�ÕÌ��v�Ì�iÞ½Ài�being recognized on a daily basis, there’s a good chance you might retain them for years (even if you never promise them a gold watch).

ii`���Ài�V��Û��V��}¶�ƂVV�À`��}�Ì��>��>��Õ«�«���]�V��«>��iÃ� with large numbers of disengaged workers experience much lower «À�`ÕVÌ�Û�ÌÞ]�>�`�Ì�iÃi�i�«��ÞiÀÃ�iÝ«iÀ�i�Vi`��ÛiÀ�x£�«iÀVi�Ì�

higher turnover than their peers.£ä�Ƃ``�Ì���>��Þ]�>���ÃÌ�xä�«iÀVi�Ì�of employees polled said they would leave their job for a company that clearly recognized employees for their efforts and contributions. Finally, among respondents who stated they plan to search for a new ��L�Ì��Ã�Þi>À]����Þ�Ó{�«iÀVi�Ì�>Ài�Ã>Ì�Ãwi`�Ü�Ì��ÀiV�}��Ì����ÀiVi�Ûi`�at work.££ This presents a clear opportunity for improvement.

Trend 3: Leverage the Power of Social Employee Recognition

With the world going much more social, social employee recognition has made it to the workplace. Organizations are encouraging and allowing employees to recognize their peers and utilizing new SaaS technologies to let them share it on a social platform for everyone to see.

/��Ã��>Ã�LiV��i���«>VÌvÕ��LiV>ÕÃi��Ì�>�«��wiÃ�`>��Þ�ÀiV�}��Ì���� and helps reinforce desired behaviors to drive employee success. Furthermore, it highlights key performers in an organization and �`i�Ì�wiÃ���}��«�Ìi�Ì�>�ð��

51%According to Gallup, companies with large numbers

of disengaged workers experience much lower

productivity, and these employers experienced

over 51 percent higher turnover than their peers.10

9. See Bersin10. See Lupfer11. See Lupfer

Page 13: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

13PART 03 | 2013 TRENDS IN RECOGNITION: FOUR BEST PRACTICES TO POSITIVELY IMPACT EMPLOYEE SUCCESS

-�V�>��i�«��Þii�ÀiV�}��Ì�����Ã�½Ì����Þ�>�«��wi`���i�Ü>Þ]�LÕÌ�>�Ã�� allows employees to interact with each other in real-time and acknowledge their teammates’ accomplishments. How many of us ever feel in the dark about others’ job responsibilities, especially in different departments? This facilitates constant communication among employees, regardless of geographic location and time zone, and helps align them with the bigger picture.

��ÜiÛiÀ]�Ì�i�Ài>��Li�iwÌ��v�Ì��Ã�ÌÀi�`��Ã�Ü�i��Þ�Õ�ÃÌ>ÀÌ�Ã�>À��}����>���social media platforms outside of the company.

�Ì���}�Ì�Ã�Õ�`�VÀ>âÞ�>Ì�wÀÃÌ]�LÕÌ�V��«>��iÃ�>Ài�`���}��Ì�>�`�Ì�iÞ½Ài�getting great results. So many companies spend endless hours and dollars trying to create a positive, powerful social media presence. With social recognition, you provide an outlet for positive messaging to help support your employer brand and make your employees more engaged and productive. In other words, everybody is #winning.

External social employee recognition means sharing an internal recognition across the individual employees’ external networks ��V�Õ`��}��>ViL���]�/Ü�ÌÌiÀ�>�`�����i`��°���̽Ã��«Ì���>�]�LÕÌ��Ì�«�>ÞÃ�Ì��people’s intrinsic motivations. For the same reason that people share little details about their lives to create an online persona, they’ll want Ì��Ã�>Ài�Ì��Ì�i�À�ÃÕVViÃÃiÃ����Ì�i��vwVi�Ì�À�Õ}��Ã�V�>��ÀiV�}��Ì���ð�

/�i�Li�iwÌö�/�iÀi½Ã�>�V��ÃÌ>�Ì�y�Ü��v�«�Ã�Ì�Ûi�V��Ìi�Ì�Ài�>Ìi`�Ì��Þ�ÕÀ�V��«>�Þ°��9�Õ�LÕ��`�>��>ÌÌÀ>VÌ�Ûi�i�«��ÞiÀ�LÀ>�`]�>�`�ÃiÌ�Þ�ÕÀ�V��«>�Þ�Õ«�v�À�Ã�V�>��ÀiVÀÕ�Ì��}°��9�Õ�V>��iÛi��v����Ü�LiÃÌ�«À>VÌ�ViÃ�and link recognitions to information about hiring. Who wouldn’t want to work for a company that recognizes their employees? It’s a competitive advantage that doesn’t only attract great new talent, it helps retain the A players you already have.

Trend 4: Use Data to Identify High Performers and High Potentials

So with all the great recognition technology out there that enables recognition and feedback daily, you have a mountain of data that should be leveraged. The next trend is using that data to identify who is up and coming in the company and who you should focus on developing and promoting.

What data? Well think about all of your most recognized employees. They must be doing something right. Data from recognition platforms provide insight into who’s living the corporate values daily so you can get more understanding of what makes employees successful. 1�`iÀÃÌ>�`��}�Þ�ÕÀ�Ì�«�«iÀv�À�iÀÃ��i�«Ã�Þ�Õ�w�`���Ài��v�Ì�i�°�

Also, think about people in your company that are recognizing others all the time. This gives great insight into current or potential leader-ship that believes in recognition – one of the fundamental principles �v�>�}Ài>Ì��i>`iÀ°��"�i��v��>��Õ«½Ã�+£Ó�ëiV�wiÃ�Ì�>Ì�}Ài>Ì��i>`iÀÃ�recognize employees once a week.£Ó

How about the leaders that aren’t recognizing? With that data you V>��>�Ã��w�`�ÌÀ>����}��««�ÀÌÕ��Ì�iÃ��À��>Ûi���i������i�V��ÛiÀÃ>Ì���Ã�to support your recognition and performance culture.

��«>��iÃ�>Ài�Li}�����}�Ì��ÕÃi�Ì��Ã�ÌÞ«i��v�`>Ì>�Ì��ÃÕ««�ÀÌ� performance management and all other elements of the employee lifecycle. Any insight HR departments and companies can gain on top or bottom performers can be used to make decisions that will impact employee and business success.

12. See Q12 Meta-Analysis: The Relationship Between Engagement at Work and Organizational Outcomes

Page 14: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

14PART 04 | RESULTS: OR WHY YOUR CFO WILL LOVE IT

So why does all this matter? Why jump on the trends of modern recognition to drive employee success? Well, quite simply, because it also drives business success. There is irrefutable evidence today a company culture built around recognized and engaged employees has bottom line impact. ��À�iÝ>�«�i]��",/1 ½Ã�£ää�iÃÌ�*�>ViÃ�Ì��7�À����À���ÃÌ°��/�iÀi�>Ài���}�iÀ�À>ÌiÃ��v�ÀiÌÕÀ���ÛiÀ�Ì�i��>ÃÌ�`iV>`i]�`À>�>Ì�V>��Þ���ÜiÀ�ÌÕÀ��ÛiÀ]�>�`� overall better business performance.

PART 04

Results: Or Why Your CFO Will Love It

Comparative Annualized Stock Market Returns Comparative Cumulative Stock Market Returns

�",/1 ½Ã�iÃÌ�£ää ��«>��iÃ�Ì��7�À����À

,ÕÃÃi���Îäää -E*�xää

3.71%4.02%

10.32%

�",/1 ½Ã�iÃÌ�£ää���«>��iÃ�Ì��7�À����À

,ÕÃÃi���Îäää

-E*�xää

-�ÕÀVi\�,ÕÃÃi�����ÛiÃÌ�i�Ì��À�Õ« -�ÕÀVi\�,ÕÃÃi�����ÛiÃÌ�i�Ì��À�Õ«

iÃÌ���«>��iÃperform 3x betterthan the general

market

�Ài>Ì�7�À�«�>ViÃprovide 4x the return

+295%

+74%

Page 15: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

15PART 04 | RESULTS: OR WHY YOUR CFO WILL LOVE IT

The best part, and this comes with a huge congratulations to the HR community, is that the rest of the world is listening. The rest of the business world is starting to come around and realize that recognition >�`�i�}>}i�i�Ì�ÃÌÀ>Ìi}�iÃ�>Ài���«�ÀÌ>�Ì°�����v>VÌ]����Óä£Ó�Ì�i�vÀ��Ì�page of the Harvard Business Review declared the value of happiness >�`�Û>��`>Ìi`���Ü�i�«��Þii�Üi���Li��}�`À�ÛiÃ�«À�wÌð£Î We can now have some leverage to ensure we’re supporting this type of environment and culture to our workplace.

100 Best Companies Voluntary Turnover

£ää�iÃÌ�­¯®

InformationTechnology

Manufacturing& Production

��ÃÌÀÕVÌ���

Healthcare

Finance &Insurance

ProfessionalServices

��`ÕÃÌÀÞ�ƂÛiÀ>}i�­¯®-�ÕÀVi\�º£ää�iÃÌ»�`>Ì>�«À�Û�`i`�LÞ��Ài>Ì�*�>ViÃ�Ì��7�À����ÃÌ�ÌÕÌi]���V°��«>À>Ì�Ûi�data provided by BLS. “100 Best” data includes FT & PT turnover; BLS data includes

the same addition to turnover for temp/contract workers.

iÃÌ���«>��iÃexperience as�ÕV��>Ã�xä¯less turnover

5.9%

14.4%

6.2%

10.5%

6.9%

17.0%

7.1%

15.4%

9.4%

10.7%

11.3%

24.7%

£Î°�-ii�/�i�6>�Õi��v��>««��iÃÃ\���Ü� �«��Þii�7i���i��}��À�ÛiÃ�*À�wÌÃ

Page 16: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

16PART 05 | ONE MORE THING: THE SIMPLE ONE-PAGER ON RECOGNITION

9�Õ��>Þ�Li�>���}Õ�}��������>���}�>�`�vviÀi�Vi��iÛiÀ>}��}�ÀiV�}��Ì�������Þ�ÕÀ�Ü�À�«�>Vi°�ÕÌ�Þ�Õ��>Þ�Li�ÃÌÞ��i`�LÞ�LÕ`}iÌ]�iÝiVÕÌ�Ûi��i>`iÀÃ��«]� �À�Ã��i�À�>`L��V�°��v�Ì�>̽Ã�Ì�i�V>Ãi]�Þ�Õ�V>��ÃÌ����ÕÃi�Ì�i�`>Ì>��iÀi�>�`��>�i�>�`�vviÀi�Vi°�9�Õ��ÕÃÌ��>Ûi�Ì��Ài�i�LiÀ���i�Ì���}\

Recognition should be SMT – Speci"c, Meaningful and Timely.

/��Ã�Ã��«�i]�i>ÃÞ�Ì��Ài�i�LiÀ�v�À�Õ�>�}Õ>À>�ÌiiÃ�Ì�>Ì�Þ�ÕÀ�ÀiV�}��Ì����ÃÌÀ>Ìi}Þ�Ü����>�«��vÞ�ëiV�wV�Li�>Û��ÀÃ�Ì�>Ì�`À�Ûi�ÀiÃÕ�ÌÃ�>�`���VÀi>Ãi� employee engagement. Even if you don’t have technology or can’t jump on all these trends, get your managers and people to know what is important to your organization (start with your values) and how to deliver recognition.

Here are three ways to ensure that you’re recognizing for the right reasons, every single time:

����4GEQIPKVKQP�UJQWNF�DG�URGEKƂE�� 7�>Ì�Ü>Ã�Ì�i�>VÌ���¶�/��Ã�>VÌ����Ã��Õ�`�ÀiyiVÌ�Þ�ÕÀ�V��«>�Þ� values and overall foundation that make your business successful.

2. Recognition should be meaningful. How did the action positively impact your business? For example, your employee’s attentive customer service produced a super happy customer.

3. Recognition should be timely. Do it now, don’t wait until the annual company event – because the action will seem to be unnoticed and those behaviors won’t get repeated.

Now it’s your turn. How did one of your employees impact business success today? Take a moment and recognize them for displaying Ì�i�À�}�Ì�Li�>Û��Àð��>�ViÃ�>Ài]�Ì�iÞ½���`���Ì�>}>��°�Ƃ``��}�ÀiV�}��Ì���� as an agenda to your weekly team meeting is an easy way to get impact early. Recognition drives people’s internal intrinsic motivation. It works.

PART 05

One More Thing: The Simple One-Pager On Recognition

Page 17: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

17PART 06 | WORKS CITED

Works Cited

iÀÃ��]���Ã�°�º iÜ�,iÃi>ÀV��1���V�Ã�Ì�i�-iVÀiÌ��v� �«��Þii�,iV�}��Ì���°»���ÀLiðV���£Î��Õ�°�Óä£Ó°�7iL°�Ç��>��Óä£Î°� <�ÌÌ«\ÉÉÜÜÜ°v�ÀLiðV��ÉÃ�ÌiÃÉ��Ã�LiÀÃ��ÉÓä£ÓÉäÈÉ£ÎÉ�iÜ�ÀiÃi>ÀV��Õ���V�Ã�Ì�i�ÃiVÀiÌ��v�i�«��Þii�ÀiV�}��Ì���É>

º�>ÃÃ��v�Óä£Ó\�1�`iÀÃÌ>�`��}�Ì�i� ii`Ã��v�Þ�ÕÀ��ÕÌÕÀi�7�À�v�ÀVi°»�Achievers.com��iL°�Óä£Ó°�7iL°�Ç��>��Óä£Î°� <�ÌÌ«\ÉÉÜÜÜ°>V��iÛiÀðV��ÉÀiÃ�ÕÀViÃÉÜ��Ìi«>«iÀÉV�>ÃÃ�Óä£Ó�Õ�`iÀÃÌ>�`��}��ii`Ã�Þ�ÕÀ�vÕÌÕÀi�Ü�À�v�ÀVi>

�>��Õ«°�7iL°�Ç��>��Óä£Î°���ÌÌ«\ÉÉÜÜÜ°}>��Õ«°V��ÉÃÌÀ>Ìi}�VV��ÃÕ�Ì��}É�>��°>ëÝ>

�>ÀÀ]�-Ì>V�>�-�iÀ�>�°�º �>L���}�,iV�}��Ì���\��iÀ�`�>��,i��v�ÀViÃ��ÌÃ�Õ�ÌÕÀi��v� �}>}i�i�Ì�Ì�À�Õ}�� �«��Þii�,iV�}��Ì����>�`�� Rewards.” Bersin & Associates��iV°�Ó䣣°�7iL°�Ç��>��Óä£Î°���ÌÌ«\ÉÉÜÜÜ°>V��iÛiÀðV��ÉÃ�ÌiÃÉ`iv>Õ�ÌÉw�iÃÉ>V��iÛiÀÃ�

customer-success-story-meridian.pdf>

º�>ÀÌ�iÀ���}���}�ÌÃ��iÞ�*Ài`�VÌ���Ã�v�À��/�"À}>��â>Ì���Ã�>�`�1ÃiÀÃ����Óä£ä�>�`�iÞ��`°»�Gartner.com�£Î��>�°�Óä£Ó°�7iL°�Ç��>��Óä£Î°�

���iÃ]��>Ì�iÀ��i°�ºÀi>Ì��}�>�,iV�}��Ì����Õ�ÌÕÀi\��i���ÌÌi�>�>`>�¼-Ì>�`Ã�1«½�Ì��-Õ««�ÀÌ��ÌÃ�/>�i�Ì��>�>}i�i�Ì����Ì�>Ì�Ûi�Ü�Ì��> Reward and Recognition Program.” Bersin & Associates�ƂÕ}°�Ó䣣°�7iL°�Ç��>��Óä£Î°���ÌÌ«\ÉÉÜÜÜ°>V��iÛiÀðV��ÉÀiÃ�ÕÀViÃÉ

V>ÃiÃÌÕ`ÞÉ`i���ÌÌi�V>�>`>>

���iÃ]��>Ì�iÀ��i°�º,iV�}��â��}� �«��ÞiiÃ\�����Þ�>�>`>���VÀi>ÃiÃ� �«��Þii� �}>}i�i�Ì�Ü�Ì��>��Þ�>��V�,iÜ>À`Ã�*À�}À>�°»� Bersin & Associates��Õ�°�Ó䣣°�7iL°�Ç��>��Óä£Î°���ÌÌ«\ÉÉÜÜÜ°>V��iÛiÀðV��ÉÀiÃ�ÕÀViÃÉV>ÃiÃÌÕ`ÞÉi�������Þ>

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PART 06

Page 18: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

U T H E 2 013 G U I D E T O U

HOW TO CREATE A STRATEGY THAT DRIVES

>> EMPLOYEE SUCCESS <<

Achievers’ 2013 Guide to Recognition helps you create a powerful recognition strategy that drives Employee Success in one, dynamic, how-to guide.

You may be interested in...

,QFUHDVH�(QJDJHPHQW� At all stages of the employee lifecycle5HGXFH�7XUQRYHU� Keep and motivate your top performers'ULYH�%HKDYLRU� Align your employees to the bigger picture3OXV discover the link between Employee Success and Business Success

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Page 19: 2013 Trends in Recognition - Achieversgo.achievers.com/rs/iloverewards/images/EBook_2013... · main changes to our workforce today that HR and businesses need to be aware of and react

The AV��iÛiÀÃ���ÃÃ�����Ã�Ì���>�}i�Ì�i�7>Þ�Ì�i�7�À�`�7�À�ð�7i�>Ài�>VV��«��Ã���}�Ì��Ã�by helping companies around the world recognize and reward positive employee behaviors on

a daily basis resulting in higher employee engagement and better business results. With our award-winning technology, unmatched customer service and industry-leading expertise

we have powered the world’s most successful rewards and recognition programs.

Check us out on the web at www.achievers.com

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